Seamless Steel Pipe Supply to Tighten More after October

The supply of seamless steel pipe would become much tighter in Japan in October 2006-March 2007. Japanese pipe makers cannot respond the demand for supply expansion from the users when the demand is increasing more than the makers expected for both export and domestic shipment and the makers have continued full operation. There are delivery delay in some sizes and types at some makers for domestic shipment. The supply shortage is expected to reach the peak in October-March.Japanese export of oil well tube is increasing thanks to active development motivation of oil companies when crude oil price stays high. Seamless steel pipe demand for domestic market is expanding for construction machine, industrial machine, chemical plant and shipbuilding since 2002 year by year.Japanese major seamless steel pipe makers are expanding output capacity mainly for high-grade products such as 13% chrome series and are meeting the increasing export of high alloy oil well pipe.Some of Japanese distributors try to purchase seamless steel pipe from overseas makers under the short supply. However, the demand is strong worldwide and they face difficulties in the procurement. The users might have difficulty in purchasing enough pipes after October.